January 13, 2020
What is fomo in stock trading?
FOMO usually means “Fear of missing out”
Just like the phrase says, the feat that now is the last chance to act. Often used to describe buying behaviour when stocks are moving suddenly and more buyers appear to enter all of a sudden. Source: https://www.ozstockstats.com/trading-terminology/FOMO
What is fomo in stock trading doing?
FOMO, fear or missing out in stock trading, financial fomo, investing fomo creates inflated stock market prices, as investors and traders ignore the valuation and fundamentals of the stocks, and chase the stock market, driving stocks higher, to a valuation that is in fact an irrational exuberance, creating asset bubbles.
Fear of missing out is a sure way to make costly stock-investing mistakes
Opinion: Fear of missing out is a sure way to make costly stock-investing mistakes. So will you do any stock investing, stock trading mistakes ignoring the true value of stocks and rather buy stocks not to witness the fomo investing or fomo trading effect? Stock market investing is not gambling.Stocks to buy, stocks to sell should be based on a fundamental and valuation or financial analysis, not only technical analysis. Investing, finance is about analysis, fomo investing or fomo trading ignoring the fundamentals is a very risky stock trading strategy.
